Split, or division of shares, is an operation carried out by a joint-stock company which involves in reducing the nominal value of shares while maintaining the same amount of share capital.
As a result of the split, the market price also decreases accordingly and the number of shares in circulation increases, while the company's market capitalization remains unchanged.
The share split ratio is, for example, 1:2 (two "new" shares are issued for one "old" share). Usually, the proportions are "rounded", i.e. 1:5 or 1:10, but they can also occur as follows: 1:67 or 1:31.
In the case of a split, the number of shares is adjusted on individual Trading Accounts on the day of the share split.
🚩 Fractional Rights also participate in share splits. The number of Fractional Rights is calculated according to the split ratio. Since there will be more "new" shares than "old" shares, it may happen that Fractional Rights merge into whole shares (e.g., 0.5 Fractional Rights after a 1:2 split will become 1 whole "new" share).
Information regarding the split date for individual instruments can be found on our website in the News tab .